The trend of institutional investors seeking to generate returns on their bitcoin holdings is gaining momentum, with finance platform Mezo announcing its entry into the market with a novel solution. Mezo Prime is introducing segregated vaults, known as Enclaves, which enable institutions to earn yield on bitcoin held in custody with Anchorage Digital Bank.
This development reflects a broader change in how institutions perceive bitcoin, transitioning from a passive store of value to a capital asset capable of generating immediate returns. The emergence of bitcoin-native yield infrastructure, such as Rootstock and Babylon, has driven this shift, allowing BTC to be utilized in lending, collateralized borrowing, and other financial strategies within the Bitcoin ecosystem. Mezo's Enclaves are designed to address institutional concerns around asset segregation, reporting, and risk controls, which have historically limited participation in crypto lending and decentralized finance.
The project has received 250 BTC ($19.4 million) in funding from Bullish, which is also among the first users, allocating part of its treasury to the product while maintaining its existing custody framework. Bitcoin deposited into the vaults can be locked to earn protocol fees or used as collateral to borrow MUSD, a bitcoin-backed stablecoin, without being rehypothecated. Although institutional adoption of these products is still in its early stages and yields are relatively low compared to other crypto assets, projects like Mezo demonstrate a growing trend of institutions treating bitcoin as a productive financial asset, rather than just a digital equivalent to gold.